FIGARO COFFEE Group, Inc. (FCG) said on Thursday that it is set to sell about P170 million worth of preferred shares to Camerton, Inc.
In a regulatory filing, the listed company said it had signed the subscription agreement of 8.5 billion preferred shares of the company for P0.02 per share.
The company said Camerton will initially pay P42.5 million in cash, with the balance to be paid upon and under the terms determined by Figaro’s board of directors. It did not give details about Camerton.
Figaro earlier disclosed that its board approved the issuance of the first series of preferred shares, which would support the company’s increase in capital stock.
Its board also approved the increase in the company’s authorized capital stock to P1.34 billion, which is divided into about P1.16 billion worth of 11.56 billion common shares with a par value of P0.10 per share; and P185 million worth of 9.25 billion preferred shares with a par value of P0.02 per share.
“The subscription is subject to and is conditional on the approval by the Securities and Exchange Commission of the application for the aforecited increase in authorized capital stock of the company,” it said.
It added that the increase in its capital stock would provide the company with flexibility in conducting future fundraising activities to support its business operations and expansion plans.
During the first quarter, the company’s attributable net income rose by 52.1% to P99.36 million from P65.34 million in the same period last year. Its top line surged by 73% to P1.03 billion from P528.04 million the previous year.
Figaro through its subsidiary Figaro Coffee Systems, Inc. operates and/or franchises a network of retail restaurants, which include Figaro Coffee, Angel’s Pizza, Tien Ma’s, The Figaro Group Express outlet, and Cafe Portofino.
On Thursday, Figaro rose by 2.86% or two centavos to P0.72 per share. — Adrian H. Halili